BOTH the auction and forward Merino markets finished the first half of the season strongly.
The 19 micron contract hit the 1600-cent level in both January and February and the 21 micron contract broke 1400 cents for the same period, with represents close to cash. Exporters were looking for only minor discounts for March. Post-Easter was still, with little interest, reflecting the lack of depth in export orders and interest for this period.
We except bidding depth to fall away as buyers look to a well-earned break after a very volatile first half of the season. The strengthening $US may see some good opportunities for growers to hedge in the early part of next week, as offshore mills look to take advantage of the currency to set some New Year prices.
The forward platform will be open until December 23 and re-opening on January 3. A happy, holy and safe Christmas to all.
Jan 19 micron 1600 cents 3 tonnes
Jan 21 micron 1400 cents 2 tonnes
Feb 19 micron 1600 cents 7.5 tonnes
Feb 19.5 micron 1560 cents 3 tonnes
Feb 21 micron 1410 cents 12 tonnes
April 19 micron 1575 cents 10 tonnes
Total 37.5 tonnes
Source: Southern Aurora Wool.